In an effort to maximize the value of hog slaughtering in a processing plant, it appears we should not only think of hogs in groups or categories by weights or quality grades, but consider also each hog as an individual. We should analyze the various yield potentials of each hog according to the relative value of the various cuts based upon current market values, giving due consideration to market value of the various weight ranges of each primal cut and to the fact that yield potential of most of the cuts can be varied by the point of demarcation and still stay within customary trade practice. Where a primal cut is going to be reduced to a boneless cut, it is frequently possible to deviate beyond normal trade practice and improve values without inviting criticism from customers or the ultimate consumer.
The value of hog cuts must be calculated daily using current market values for each cut. The mark value of each cut is based on the cut weight. All cuts within a given weight range have the same market value. The desired weight of each of the primal cuts to produce maximum return for the current market is determined by establishing the exact points of demarcation between each primal cut on the individual carcass.
As an industry, we have applied the above technique to all hogs for a given market situation for an entire day's cut and this is where we lose a profit potential. It will be much easier to narrow our discussion to two primal cuts and amplify to all cuts later than to try to encompass all cuts at this point. Therefore, we will only consider hams and loins.
According to the previous methods on a given day when hams were selling substantially above loins, a standard well-run plant would issue instructions to cut all hams at least three fingers beyond the aitch bone on all hogs for that day's operation. Some plants would carry this to the extreme and specify the point of demarcation should be four fingers (approximately three inches) beyond the aitch bone. This practice would produce many hams and loins yielding less than the maximum profit potential.
For example, by cutting both sides of a carcass at a point 2.5 inches beyond the aitch bone, we could expect to produce two 18.00 lb. hams and two 12.50 lb. loins from a dressed carcass weighing 180 lbs., 32 inches long and 1.5 inches average backfat thickness.
In the market shown below, the value of the loins and hams would be computed as follows:
2 loins weighing 12.50 lbs. each (14.5 & down) at $0.435/lb. =$10.88 2 hams weighing 18.00 lbs. each (17.5 - 20.5) at $0.395/lb. =$14.22 Total $25.10 Market Value ($/lb.) Ham and Loin Weight Class (Lbs.) Hams Loins __________________________________________________________________________ Less than 14.5 0.4900 0.4350 14.5 - 17.5 0.4275 0.4100 17.5 - 20.5 0.3950 0.3550 __________________________________________________________________________
Although it may not be obvious, in this market this hog was not cut in a manner to produce the most revenue. From our development, we know that the cut on the hams should have been 1.7 inch beyond aitch bone instead of 2.5 inch. We would produce the following cuts:
2 loins weighing 13.00 lbs. each (14.5 & down) at $.435/lb. =$11.31 2 hams weighing 17.25 lbs. each (14.5 - 17.5) at $.4275/lb. =$14.75 Total $26.06
By cutting this one hog at 1.7 inches rather than 2.5 inches from the aitch bone, we increased our revenue from $25.10 to $26.06 or $0.96.
Accordingly, a technique has been developed for increasing the revenue obtained from hams and loins. This technique is based on the proposition that particular measurements made on individual hog carcasses can be utilized for predicting the cutting locations yielding meat and carcass parts having a maximum value. This technique is not restricted to maximizing only the value of the ham and loin cuts, since the concept applies to other cuts of fresh pork or other meat products, such as picnics, bellies, butts, etc.